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Insurance

Do you remember when you secured the mortgage for the property you are buying that the lender made it a condition that you maintained sufficient building insurance throughout the term of the mortgage?

You probably arranged the cover – and thought no more about it, except to renew it each year.

But if you leave your property temporarily unoccupied, that regular building insurance might be restricted or even lapse altogether, so not only leaving the property vulnerable to loss or damage but also put you in breach of the mortgage conditions you agreed.

How might such a state of affairs arise?

Variation to your current property insurance

Whether it is your own home, property you have bought to let or commercial premises in which you have invested, your insurance cover remains valid for as long as it is occupied on a more or less continuous basis.

But then you might leave it unoccupied for a month or more while you go on an extended holiday or build an extension, during a change-over of tenants if you are a landlord or investor in commercial property, or whilst the property in question is subject to probate.

In these, or several other instances when the property is left empty and unoccupied for longer than 30-60 consecutive days, however, insurers typically restrict the cover on the property and may even regard it as having lapsed altogether.

Why the variation

Insurers downgrade the cover for your property, or exclude it altogether, because of the greater risks and perils faced by an empty building compared to one that it occupied on a more or less continuous basis. Those increased risks are many and varied, but two might stand out in particular:

when there is no one on hand to spot the fault, a need for otherwise simple maintenance or repair might turn into a full-blown emergency (just think of a dripping tap, which gets steadily worse and ends up flooding the entire building); and

an empty property attracts all manner of unwanted attention, from the likes of burglars, squatters, vandals and arsonists – the British Institute of Facilities Management (BIFM), estimates that British property suffers some £500 million in damage through vandalism and arson every year.

Unoccupied property insurance

When your current property insurance is downgraded because the building is temporarily vacant, unoccupied property insurance steps in to fill the void.

As a standalone insurance policy, it may provide as much, or as little, cover as you choose – for the duration of the period you expect your property to be standing empty. You may need to check, however, that the level of cover you choose restores the undertaking you gave to your mortgage lender to keep the building adequately insured.

Unlike many other types of insurance, unoccupied property insurance may be purchased solely for the period you expect the premises to be empty. Rather than having to commit to a full 12 months, therefore, you may choose to arrange cover for just the number of months you expect it to be standing empty and unoccupied.

Investing in property has long been a good way to generate income. After all, there will always be people out there who need somewhere to live but are unable – or unwilling – to buy their own place. So, if you’ve got the funds to buy a development to let out to tenants, you could make some significant earnings.

Before you get too carried away with planning what to do with the money you receive from tenants or lofty ambitions for expanding your own property empire, you need to make sure you’ve got adequate protection in place. Investing in a set of homes, of course, represents a substantial financial commitment, so you should really do everything possible to be sure your investment will stay safe.

So, how do you go about doing this? It’d be a mistake to think you can get the same kind of home insurance policy that you currently have for your actual residence, as there are a host of additional risks and eventualities that you will need to plan for. As such, specialist cover is required, which is where high-risk home insurance from brokers can be of assistance.

Whether you’re looking to convert a large house or barn into a set of flats or taking over the management of an existing apartment block, you need to ensure you have a high standard of insurance in place. As a complex of investment properties is likely to have a greater net worth than your actual residence, you should make sure the limits of your cover are high enough to accurately reflect their value.

One vital consideration property investors ought to check for is building cover, as this can ensure you’re covered in case your homes suffer from flood or fire damage. Before you are able to let out your properties, you might need to carry out substantial improvements – especially if the development requires converting so it is suitable for residential use – so it’s worth ensuring you’ll be fully covered while tradesmen work on getting your place into shape.

In addition, you should think about whether the homes you let out are going to be pre-furnished. If this is something you decide to do, you ought to incorporate contents cover so that items such as carpets, fridges and other household appliances you own will be protected.

Of course, you’re not going to be living in the properties that you let out, but you ought to make sure you won’t have to pay for repairs to your homes that have been caused maliciously. Cover to protect damage done by tenants can be easily incorporated into an insurance policy, so you don’t have to meet the burden of replacing broken windows or doors directly out of your own pocket.
It is, obviously, a good idea to carry out thorough background inspections of the people who wish to rent one of your homes before you accept them as a tenant. You don’t want to rent to people who are unlikely to look after your property so such checks may help you reduce the chances of having to make a claim.

Regardless of what kind or how many residential properties you’re hoping to invest in, having comprehensive cover can provide vital financial protection. If you’re considering stepping on to the buy-to-let ladder for the first time, or already own a number of homes that you let out, why not share your experiences with us?

Scams cost the insurance industry billions of pounds every year. As a result you might think getting away with such a crime is a piece of cake, however, those thinking they can make a quick buck by taking advantage of their policy should heed these cautionary tales;

The Canoe Man

In 2007 John Darwin and his wife Anne rose to fame after being found to have attempted one of the most audacious insurance scams of recent years. Back in 2002, in the face of crippling debt, the father of two decided to fake his own death, allowing his wife to collect a huge amount from pensions and insurance payouts.

He looked to deceive the authorities by rowing out to sea in a canoe and having Anne report him as missing. Though he was alive in well in hiding, after a search by coast guards of surrounding waters turned up nothing, he was thought to have drowned and was eventually declared officially dead.

He and his wife then attempted to move away to Panama, using their ill gotten gains to buy a tropical estate. However, various parties had become suspicious that something was amiss. Whilst they were looking at properties in Panama an estate agent snapped them together and used the photo on their site. A reporter looking into the case found the picture on Google images and the capper was up.

Possibly the saddest aspect of the whole story is that both his sons were never informed of the ruse. Both genuinely believed him to be dead until the plot was discovered.

The Black Widows

Helen Golay and Olga Rutterschmidt, a pair of pensioners from California, attempted to make millions through their acts of murder via a scam that was as shockingly heartless as it was lucrative.

The pair approached homeless men and promised to help find them shelter as a ruse to obtain their personal details. Once they had these, they took out multiple life insurance policies in their names. Finally, they killed them off.

They killed two men, Paul Vados and Kenneth McDavid, and had approached others before being caught. Between them they’d received over $2 million prior to being sentenced to life in jail.

John Mango

Unlike the Black Widows, who committed murder as a means of pulling of an insurance scam, John Mango accidentally ended up becoming guilty of seconded degree murder when he attempted a scam of his own.

Most ordinary people do not pay much attention to their insurance policies until something happens and a claim comes up. Like most of us they just make their premium payments and go on about their daily business. However, when something does happen, making a claim is not quite the piece of cake many would like to think. Insurance claims involve much more than what meets the eye.

If you are not careful your insurance company can walk all over you, figuratively speaking of course. This is when it will become especially necessary for you to know the difference between insurance loss adjusters and insurance loss assessors. You see, one is going to have your best interest at heart whilst the other is going to try hard to make sure your insurance company is found favourable in the situation. You would be wise to pay attention and know the difference before taking on your insurance company.

Insurance loss adjusters, also simply called insurance adjusters are hired hands that work for your insurance company. They are not going to be on your side in a claim as it is their duty to see that the insurance company comes out smelling like a rose. Never allow yourself to be fooled into believing an insurance loss adjuster is thinking of what is best for you.

To the contrary, insurance loss assessors are professionally skilled individuals whom you hire to look out for your best interest during a claim. These people work for the insured, not the insurance companies. Insurance loss assessors can be found through companies like Salmon Assessors which provide representatives 24 hours a day, seven days a week. They are highly experienced at representing people with insurance claims and being sure that everything is in order. If you are negotiating a claim then this is the type of worker you want to have on your side.

If you’re traveling around the country this summer, you really need to make sure that you have the right insurance. Now, you might be thinking that we’re crazy. Don’t we know that you’re a smart motorist? Don’t we know that you have plenty of auto insurance to cover you in the event of an accident? This is all true, and we know that you’re a very careful driver that cares about how you handle the road. However, you might not have considered the fact you’re carrying a touring caravan with you. That changes the game entirely, and it’s important that you figure that out. You need to make sure that you have looked up adequate insurance. Since you’re carrying an extra load, there is increased liability. You don’t want your auto insurance company to tell you that you’re out of luck merely because you didn’t have the extra insurance, right? This could mean thousands upon thousands of pounds worth of damages that you’re going to have to pay for. Is your savings account really ready for all of that?

Instead of worrying, you’re going to be able to figure all of these things out on your own. That’s the best part about all of this. There’s no more need to worry or fret about what moves you need to make. We’ll get you sorted out here in just a second.

See, what you need to do is go online to look up insurance quotes for touring caravans. Instead of trying to go to the little insurance shop right by your home, you can stay in the comfort of your own flat and get things taken care of online. It’s not always the easiest road to travel, because you are still going to have to look up quotes and really read the fine print, but it’s definitely worth it. Why wouldn’t you want to figure out exactly how to get things moving in the right direction? Some people put this off because they believed that it’s going to be too expensive, but that’s not the case at all. What you’ll actually find is that there are plenty of great caravan covering companies out there that will give you a fair deal.

It’s important that you fill out each quote request honestly. Insurance companies have plenty of databases at the ready to check things out. It doesn’t make any sense at all to try to cheat the system. The only thing that’s going to do is make it harder for you to get the coverage that you not only need, but also deserve.

Naturally, if you have any questions at all during the process, you need to follow up with the insurance provider before you commit to one company or another. Don’t be afraid to ask up front about any discounts that you may be entitled to.

Each income protection insurance policy includes restrictions and exclusions that may limit a policyholder’s cover. When you purchase income protection insurance, or IPI, it’s imperative to review these restrictions carefully so that you are aware of the scope of your financial protection. You can learn about these restrictions by reading the policy wording, which is included with the documents that an insurance company provides.

The key features brochure of an IPI policy will detail the restrictions of a policy in a condensed form. You can request a key features document from an insurance provider before you buy coverage to ensure that you understand the exclusions of a policy. Ask a representative from the insurance company to clarify any exclusions that are not fully explained in the policy documents.

Restrictions on IPI Payouts

The payouts from IPI will prove extremely useful if you should be unable to work because of a severe illness or debilitating injury, but IPI benefits will not replace your entire income. IPI payouts are restricted to a set percentage of your gross earnings, generally 50 to 70 percent, depending on how much you earn and the extent of your coverage. Insurance providers limit IPI payouts in order to encourage their policyholders to return to work rather than relying on their benefits for financial support.

After you become unemployed, your weekly or monthly IPI payouts will not begin right away. Once your claim has been authorised, you must wait for the deferred period to end before you will begin receiving your benefits. As the policyholder, you have the right to select a deferment period that suits your financial circumstances. Many policyholders choose a deferred period of 3 to 6 months; however, your insurance provider may give you other options.

IPI payouts will continue until you go back to work, reach state pension age or pass away, or until your contract with the insurance company expires. The term of your contract may affect the cost of your coverage. Because of the restrictions imposed on the amount and duration of IPI payouts, most policyholders must rely on addition sources of financial support, such as state benefits or personal savings, when they become unemployed.

Excluded Medical Conditions

The primary purpose of IPI is to provide financial protection against unemployment caused by injury or illness. Some short term income protection policies may pay out for unemployment caused by redundancy, as well. Whilst IPI covers a wide range of health related circumstances, this product excludes a number of medical conditions. If you have a pre existing illness, IPI will generally not pay out if you become unemployed because of that condition. However, coverage and exclusions may vary from one insurer to the next.

Most IPI policies exclude deliberately self inflicted injuries, drug or alcohol abuse and injuries caused by war or terrorism. IPI also excludes pregnancy, which is covered under Statutory Maternity Pay through one’s employer. IPI will not pay out for minor illness or short term physical ailments, such as colds or muscle strains. However, employees may claim Statutory Sick Pay through their employer if they are unable to work for four or more days in a row because of an illness or injury.

Learning the restrictions associated with an IPI policy will help you and your family prepare for a period of unplanned unemployment. Most households must amend their budget and draw from several resources to cope with an extended loss of income. State benefits are available to assist employees who cannot work for health reasons. Having an emergency strategy in place will help you to prepare for any eventuality.

There are many types of insurance available in the market. The most common ones are life insurance, home insurance and critical illness insurance. Very few people realize that there is also income protection insurance. Like its name, the income protection insurance covers the policy holder in the event that he or she is unable to work and generate a decent income on his or her own. This form of insurance is available in the United Kingdom, Australia, and Ireland.

Should the policy holder become incapacitated to work after a certain period of time, the insurance company will disburse the benefits guaranteed in the insurance agreement to the policy holder. The agreed benefit is usually a sum of money equivalent or of similar amount earned by the policy holder before he or she was unable to perform at work due to an accident or illness. This sum of money is paid to the policy holder on a regular basis; usually every week. This income received by the policy holder is tax free.

Most of the time, the insurance company will waive the premium when the policy holder is proven to be unfit for work. However, should the policy holder recover and begin to work part time, the insurance company will reduce the amount or benefit given to the policy holder. This is to encourage the policy holder to return to work and not depend solely on the insurance.

There are also many variants of the income protection policy. The renewable policy allows the policy holder to renew the policy in terms of obtaining a higher sum assured. However, the insurance company has the right to refuse the renewal based on the policy holders’ age and type of occupation. The initial premium for the renewable policy is cheaper but it gradually increases with each renewal as the policy holder becomes older. Besides that, there is also the reviewable policy where every five years the premium rate will be revised to reflect the age and health of the policy holder.

In addition to that, there is the increasing policy where the benefit payable to the policy holder increases over time to contrast the increasing inflation rate. On top of that, there is also the investment linked policy where the premiums are more expensive as a portion of it goes to an investment fund. Finally, there is a group policy which employers purchase for their employees.

Trying to make sense of the world of insurance has never been easy. There are so many providers trying to tell you the same thing: that they unlike any other can protect your family. At the end of the day, isn’t that what it all boils down to anyway? We want to go with someone that’s going to protect our family and keep them safe. We want to go with someone that’s going to make sure that our family truly feels taken care of. We want to go with someone that makes sure that we have a life that’s well guarded, because uncertainty is everywhere. We just don’t know whether we’re going to get into a car accident or have to deal with the loss of a loved one, turning our world upside down as we try to figure out how to pick up the pieces. There are so many different things that can happen when it comes to taking care of a family that you can really never be too cautious. In addition, what price can you really put on peace of mind and well being?

We know that you don’t have a lot of time to make this decision. If you already have insurance, it might be time to see whether or not you need to add some products to the list. If you already have private health insurance, you still might want to have disability insurance carried on your person. This is also referred to as critical illness insurance. Again, we’re not trying to say that you’re automatically going to need it. However, you may come to a point in your life where a disease takes away the things that you really love. Instead of fretting endlessly about it, why not make sure that you have just about everything that you need to get past it and more?

The more that you can take care of your family, the better you will feel. The old search for better insurance meant a lot of phone calls. Now you can go online and literally just compare the insurance plans on your own. This will give you the power to make the best decision for everyone involved. There’s nothing wrong with thinking that you have to make a snapshot decision. It’s going to be more about what you can find online in a short time period.

If you do have questions about what a company is trying to offer you and you can’t figure out the fine print, call them up and ask them directly. They have to honor online offerings the same way they would honor an offering made face to face. Don’t settle for cheap excuses when you can do better than that!

When you’re trying to figure out what you really need, it’s hard to actually sit down and have that type of conversation sensibly. You might feel that it’s impossible to get everyone’s attention. You might even feel like you’re just going to be pulling teeth when it comes to getting the answers you need. Trust us, we really don’t want to see you pulling teeth or getting worried about anything at all. You have to make sure that you’re focusing on a bigger picture, a better picture than what you have currently.

This is why income protection insurance is actually pretty important. Simply put, it’s money paid out to you if you are injured or disabled and no longer able to perform your occupation.

Keep in mind that you’re not going to get your complete salary paid to you. That’s why it’s still a great idea to keep saving money and having other sources of income coming in like royalties or money from another business. You also want to be able to ensure that you can handle waiting during the time your claim is begin processed and the money paid out to you. This usually takes about 30 days, but it’s definitely worth it. Anything that you can do to hold on during that time is probably for the best.

The deferral period is really what determines how much your premiums are going to be. If you’re really serious about income protection, you really need to make sure that you set your deferral period a slow as you possibly can. This will make it a lot easier to actually have the money sent to you faster. Now, if you have other sources that you can tap into for a little while, you might go with a higher deferral period to save some money. Everyone has to make a different decision when it comes to that, so don’t get stuck hoping that everything is going to just fall into place. You need to honestly be certain that you have things going smoothly.

Government schemes for disability are equally slow to kick in, and they don’t pay out nearly as much as you might think. Why go through life being unable to really get the protection you need when income protection is there in the form of an insurance policy? Like other forms of insurance, you will definitely want to shop around. Your employer might offer a policy at work, and that should be your first place to check out.

We know that you might be leery of insurance products after the entire PPI scandal went down, but income protection is actually legitimate. It’s been shown that insurers pay out 90-95% of all income protection claims. This is definitely a great thing, as it means that the help will be there when you really need it to be there.

Good luck with your decision. Once you look around at the insurance world, you’ll find that there are actually a lot of different companies out there looking for you with plans that are going to help you out with no trouble at all. Look into them today!

Look, we know what you’re thinking — about the PPI scandal, just how do you trust the insurance industry? These are the same people that taught us that these insurance policies were bad news. That’s not something that you want to deal with if you can help it, but you still need insurance. The truth is that life moves in very uncertain ways. You have to be able to handle just about anything and everything that comes your way. Doing that with just your savings isn’t going to cut it. You’re going to have to make sure that you look into new ways to protect your family. If you’re just on your own single, then you might be willing to deal with the twists and turns of life. However, there is something to be said about going out of your comfort zone and looking into solutions that honestly work better. That’s just the way that it has to be, when you really think about it. You need to make sure that you’re focusing on all of the right things at the right time. Otherwise, you’ll end up spinning your wheels, wondering why life can’t be better. The reality is that life is amazing when you really get right down to it. You just need to be aware of what you’re up against so that you can make adjustments.

There’s nothing like being able to have peace of mind. This isn’t something that’s always easy, but it’s something that’s always worth it. You have to dig down deep and think: what can I do to make sure that my family is safe? What can I do to make sure that my family has love? What can I do to make sure that my family has security even if something happens to me?

But fraud policies take that away. It’s false security and it can end up blowing up in your face. That’s not what you need or want, is it? Not at all. You’re better off making sure that you have everything that you need to be successful, even if it means that you’re going to have problems along the way. You have to ensure that you’re taking care of your own needs without worrying about the media’s nosiness. They’re going to have their own opinions. It’s all about what you can do for your family. [Read more…] about Not All Insurance Policies are Fradulent – Get the Scoop Today